Countdown for upturn

'There is little doubt about the attractive fundamentals for supply and demand', Odfjell's CEO Kristian Mørch tells Shippingwatch in conjunction with the second quarter 2018 results.

The below is an excerpt of an interview in Shippingwatch, published August 27th 2018.
Written by: Tomas Kristiansen. 

For some time there has been a countdown underway for a recovery that the tanker players have been thirsting for. And Mørch is confident that the recovery will emerge soon, and probably this year, which would mean within the next few months. (...)

The market is now starting to feel the low ordering of chemical tanker vessels, explains Mørch, noting that the supply and demand of new ships will increase by 1.5 percent to max 3.6 percent of the fleet in the coming years. But even more important, the key figures for demand look positive and will, says Mørch, "grow significantly faster than the supply of new ships."

Fundamental demand is expected to grow by 4 percent, which in itself surpasses fleet growth. Add to this the fact that refineries are moving, and that the chemical products are thus produced farther away from the customers, meaning they have to be transported across longer distances. This provides another boost for the shipping companies. (...)

"Our mission is to handle hazardous, liquid cargoes safely and more efficiently than anyone else in the sector. We must be efficient, both in terms of unit costs, efficient asset operations (efficiency in ports), fuel economy, foresightedness, quick and smooth operations and world-class systems that can handle data. Right now we're investing big-time in digitalization"

Kristian Mørch, CEO, Odfjell SE

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